tag:www.gov.uk,2005:/government/organisations/government-actuarys-departmentGovernment Actuary's Department - Activity on GOV.UKHM Government2015-02-23T12:34:43+00:00tag:www.gov.uk,2005:DetailedGuidePresenter/2065472013-10-13T00:00:00+01:002015-02-23T12:34:43+00:00Detailed guide: Staff transfers: public service pension schemesNew and old Fair Deal policy, TUPE regulations, bulk transfers and comparability assessments; GAD support for public sector organisations.<p><em>Updated:</em> Broad comparability against the NHSPS – Important Announcement (23 February 2015)</p><div class="govspeak">
<h2 id="important-announcements-1-july-2014">Important announcements: 1 July 2014</h2>
<p><a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325463/_STT031__Actuarial_assumptions_for_broad_comparability_assessments.pdf">Actuarial assumptions for broad comparability assessments</a></p>
<p><a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325462/_STT032__Changes_to_passport_certificate_system.pdf">Changes to the passport certificate system for broad comparability</a></p>
<h2 id="new-fair-deal-guidance">New Fair Deal guidance</h2>
<p>The government published the new Fair Deal policy in October 2013. The old Fair Deal policy may still apply to a specific staff transfer if permitted by the new Fair Deal policy or if outside the coverage of the new Fair Deal policy. </p>
<p>In all cases, it is for the contracting authority/commissioners to determine whether the Fair Deal policy applies and, if so, whether a staff transfer is covered by old or new Fair Deal. </p>
<p><a href="https://www.gov.uk/government/publications/fair-deal-guidance-a-gad-technical-bulletin">New Fair Deal guidance - A <abbr title="Government Actuary's Department">GAD</abbr> technical bulletin (9 October 2013)</a></p>
<h2 id="employee-contribution-changes">Employee contribution changes</h2>
<p><a rel="external" href="http://webarchive.nationalarchives.gov.uk/20130807185735/http://www.gad.gov.uk/Documents/Staff%20Transfers/Employee_contribution_changes_2013_update.pdf">Employee contribution changes 2013 (9 April 2013)</a></p>
<p><a rel="external" href="http://webarchive.nationalarchives.gov.uk/20130904203407/http://www.gad.gov.uk/Documents/Staff%20Transfers/Broad%20Comparability/Employee_contribution_changes_2013.pdf">Employee contribution changes 2013 (14 February 2013)</a></p>
<h2 id="broad-comparability">Broad comparability</h2>
<p><a href="https://www.gov.uk/government/publications/broad-comparability-against-the-national-health-service-pension-scheme-england-wales">Broad comparability against the NHSPS – Important Announcement (23 February 2015)</a></p>
<p><a href="https://www.gov.uk/government/publications/broad-comparability-against-the-principal-civil-service-pension-scheme-in-great-britain-pcsps">Broad comparability against the PCSPS – Important Announcement (19 August 2014)</a></p>
<p><a href="https://www.gov.uk/government/publications/broad-comparability-against-the-lgps-important-announcement-12-march-2014">Broad comparability against the LGPS – Important Announcement (12 March 2014)</a></p>
<p><a href="https://www.gov.uk/government/publications/broad-comparability-against-the-lgps-important-announcement">Broad comparability against the LGPS – Important Announcement (27 November 2013)</a></p>
<p><a rel="external" href="http://webarchive.nationalarchives.gov.uk/20130904203407/http://www.gad.gov.uk/Documents/Staff%20Transfers/LGPS/Important_Annoucement_29_January_2013.pdf">Broad comparability against the LGPS – Important Announcement (29 January 2013)</a></p>
<p>Broad comparability relates to the protection of transferring employees’ future pension rights. </p>
<p>The idea is to make sure that transferring staff are entitled to pensions in respect of future service that are worth as much as they would have had, were they to have remained with their original employer. </p>
<p>For a pension arrangement to be assessed as being “broadly comparable” to a public sector pension scheme, it does not need to offer identical benefits. However, it must offer the same range of benefits, with the same (or greater) overall value. </p>
<p>The principles on which broad comparability is assessed are set out in the policy guidance (see links in the “Government policy documents” and “Other documents” sections below).</p>
<p>These include both tests of financial and qualitative value. </p>
<p>There are 2 alternative approaches to certifying broad comparability, namely an individual assessment or a ‘passport’. </p>
<h3 id="individual-assessment">Individual assessment</h3>
<p>The pension scheme offered by the new employer is compared with the original public sector pension scheme in the context of the actual employees who will transfer as part of a specific contract. Once broad comparability is achieved, the new scheme will be certified as broadly comparable, but only for this specific transfer. </p>
<h3 id="passport-certificate">Passport certificate</h3>
<p>The pension scheme offered by the new employer is compared with the relevant public service pension scheme, as it applies to a wide range of membership. Once broad comparability is achieved, the new scheme will be certified as broadly comparable for any transfer of employees who are eligible for membership of that public service scheme within the range of membership. </p>
<p>For a limited number of staff, for a single staff transfer, then it may be easier to achieve broad comparability by ‘individual assessment’. If an organisation intends to bid for many public service contracts, then it may be more convenient to establish a scheme which is eligible for a ‘passport’ certificate. A passport certificate is valid for a period of up to 2 years and during that period it can be used for different staff transfer exercises within its validity. Passport certificates may be withdrawn before expiry if, for example, there have been changes in the benefits of either the public service pension scheme or the new employer’s pension scheme. Further information is set out in: <a href="http://www.gov.uk/government/uploads/system/uploads/attachment_data/file/325462/_STT032__Changes_to_passport_certificate_system.pdf">Changes to the passport certificate system for broad comparability</a>.</p>
<p>As an alternative to having a client specific passport certificate, bidders may consider using one of the centralised multi-employer pension schemes specifically set up to provide pensions for former public service workers.</p>
<p>Passport certificates are allocated a unique reference number. Contracting authorities can check if a passport remains in force by referring to ‘in force’ passport list (see <span class="attachment inline" id="attachment_925958">
<a href="/government/uploads/system/uploads/attachment_data/file/406341/Current_Passport_List_for_GOVUK.pdf">List of passport numbers in force </a>
(<span class="type"><abbr title="Portable Document Format">PDF</abbr></span>, <span class="file-size">6.11KB</span>, <span class="page-length">1 page</span>)
</span>). The list is updated monthly and includes passport certificates held by centralised multi-employer pension schemes.</p>
<h3 id="further-information">Further information</h3>
<p>All potential clients of <abbr title="Government Actuary's Department">GAD</abbr> should note that <abbr title="Government Actuary's Department">GAD</abbr> charges fees for the assessment and certification of broad comparability. These fees are discussed and agreed before work commences. </p>
<h2 id="transfers-of-past-service-rights">Transfers of past service rights</h2>
<p>Contractors participating in a compulsory transfer of employment from the public sector are normally required to offer staff the option to transfer their accrued pension rights, in respect of past service, into their new pension scheme.</p>
<p><abbr title="Government Actuary's Department">GAD</abbr> represents public sector organisations in negotiations regarding the terms under which members’ accrued pension rights will be transferred.</p>
<p>Some public sector pension schemes take actuarial advice from other actuaries instead of <abbr title="Government Actuary's Department">GAD</abbr>, and, in that case, those other actuaries would normally negotiate the transfer terms.</p>
<h3 id="process">Process</h3>
<p>There are two distinct aspects to the transfer of pension rights:</p>
<ul>
<li>
<p>negotiation of terms - this involves discussions between <abbr title="Government Actuary's Department">GAD</abbr> and the contractor’s actuary on the basis for calculating the transfer values, and the credits which would be granted to members in the receiving scheme.</p>
</li>
<li>
<p>calculation of transfer values - once agreement has been reached and the transfer of employment has taken place, employees will normally have a period of three months to decide whether to transfer their past service benefits or to leave them in their previous scheme. Once the members have made their decisions and the appropriate data have been collected, the calculation of the bulk transfer amount for those employees who have opted to transfer is made by <abbr title="Government Actuary's Department">GAD</abbr>, and checked by the receiving scheme’s actuary.</p>
</li>
</ul><h2 id="older-guidance">Older guidance</h2>
<p>Much of the information listed below relates to the old Fair Deal policy and may not be relevant under the new policy. If you have any queries about the information contained in this section of the website or would like clarification of whether this is relevant to a particular staff transfer, please contact us for further information.</p>
<p>All previous documents can be found on the <a rel="external" href="http://webarchive.nationalarchives.gov.uk/20130904203407/http://www.gad.gov.uk/services/Staff%20Transfers/index.html">archived <abbr title="Government Actuary's Department">GAD</abbr> Website</a></p>
<h2 id="government-policy-documents">Government policy documents</h2>
<p>Fair Deal policy</p>
<ul>
<li><a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/262490/PU1571_Fair_Deal_for_staf_pensions.pdf">2013 policy</a></li>
<li><a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/81340/pensions_bta_guidance_290604.pdf">2004 policy</a></li>
<li><a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/81339/staff_transfers_145.pdf">1999 policy</a></li>
</ul><p>Cabinet Office statement of practice on staff transfers in the Public Sector </p>
<ul>
<li>2013 statement <a rel="external" href="http://resources.civilservice.gov.uk/wp-content/uploads/2011/09/COSOP-revised-Dec-13.doc">Staff transfers in the Public Sector, revised December 2013</a> </li>
<li>2007 statement <a rel="external" href="http://resources.civilservice.gov.uk/wp-content/uploads/2011/09/stafftransfers2_tcm6-2428.pdf">Staff transfers in the Public Sector, revised November 2007</a>
</li>
<li>2000 statement <a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/81339/staff_transfers_145.pdf">Staff transfers in the Public Sector, January 2000</a>
</li>
</ul><h2 id="other-documents">Other documents</h2>
<ul>
<li>
<a href="https://www.gov.uk/government/publications/assessment-of-broad-comparability-of-pension-rights">Statement of Practice by the Government Actuary (May 1999)</a> Please note that this document only applies to staff transfers taking place under the old (pre-2013) Fair Deal policy</li>
<li><a href="https://www.gov.uk/government/publications/security-of-pension-benefits-differences-between-public-service-and-private-sector-schemes">Security of pension benefits – differences between public service and private sector schemes </a></li>
</ul><h2 id="ask-gad-to-advise-you">Ask <abbr title="Government Actuary's Department">GAD</abbr> to advise you</h2>
<p>As a public sector organisation you can <a href="https://www.gov.uk/government/publications/gad-services/government-actuarys-department-services#staff-transfers">commission <abbr title="Government Actuary's Department">GAD</abbr> to advise you on transfers of employment</a></p>
<h2 id="further-information-1">Further information</h2>
<p>The following links provide further information on the Fair Deal 2004 guidance. If the staff transfer is subject to the new Fair Deal 2013 guidance and it has been established that broad comparability and bulk transfer arrangements in the new guidance apply to that staff transfer, please provide details and contact us for further information.</p>
<ul>
<li>
<p><a rel="external" href="http://webarchive.nationalarchives.gov.uk/20130807185735/http://www.gad.gov.uk/services/Staff%20Transfers/Broad_Comparability_Assessments.html">Future service rights – broad comparability assessments</a></p>
</li>
<li>
<p><a rel="external" href="http://webarchive.nationalarchives.gov.uk/20130807185735/http://www.gad.gov.uk/services/Staff%20Transfers/Transfers_of_past_service_rights.html">Past service rights – bulk transfer arrangements</a></p>
</li>
<li>
<p><a rel="external" href="http://webarchive.nationalarchives.gov.uk/20130904203407/http://www.gad.gov.uk/Documents/Staff%20Transfers/Security_Public_vs_Private_v2.pdf">Security of pension benefits in the public and private sectors, October 2006</a> </p>
</li>
</ul><h2 id="redundancy-and-injury-benefits">Redundancy and injury benefits</h2>
<p>Some redundancy and injury benefits take the form of early retirement pensions or lump sums which are similar to the pension scheme benefits and are paid through similar channels. </p>
<p>The Cabinet Office has issued guidance on these benefits stressing that it is imperative that any public contract resulting in the transfer of staff stipulates clearly that all redundancy benefits and options are taken on by the new employer.</p>
<h2 id="contact-us">Contact us</h2>
<p>To discuss your requirements, please email <a href="mailto:staff.transfers@gad.gov.uk">staff.transfers@gad.gov.uk</a>, or phone either:</p>
<p>+44 (0)20 7211 2676 or +44 (0)20 7211 2752. </p></div>tag:www.gov.uk,2005:PublicationesquePresenter/2855362015-02-23T12:31:20+00:002015-02-23T12:31:20+00:00Guidance: Broad comparability against the National Health Service Pension Scheme (England & Wales)This announcement follows on from the previous Important Announcements issued by the Government Actuary’s Department (GAD) on 1 July 2014 and 19 August 2014.<div class="govspeak"><p>On 12 February 2015, The National Health Service Pension Scheme Regulations 2015 (SI 2015/94) and The National Health Service Pension Scheme (Transitional and Consequential Provisions) Regulations 2015 (SI 2015/95) were laid before parliament. These regulations constitute the 2015 reforms to the National Health Service Pension Scheme in England and Wales (NHSPS (E&amp;W)), which come into force on 1 April 2015. Similar regulations are expected to be laid imminently, to also come into force on 1 April 2015, for the National Health Service Superannuation Scheme in Scotland (NHSSS) and the Health and Social Care Pension Scheme in Northern Ireland (HSCPS).</p></div>tag:www.gov.uk,2005:PublicationesquePresenter/2065952013-11-04T00:00:00+00:002015-02-03T15:53:21+00:00Research and analysis: Investment and risk monthly updatesMonthly update on economic indicators and other trends in finance from the investment and risk team at the Government Actuary's Department.<p><em>Updated:</em> Latest Investment & Risk Update for January 2015.</p><div class="govspeak"><p>A round-up of forecasts and data with a special focus feature in each issue.</p>
<p><a href="mailto:newsletter@gad.gov.uk&amp;subject=Subscribe%20me%20to%20your%20Updates">Subscribe to the GAD Investment &amp; Risk updates</a></p>
<p>Previous issues of the GAD investment and risk update can be found on the <a rel="external" href="http://webarchive.nationalarchives.gov.uk/20130904203407/http://www.gad.gov.uk/Publications/Investment_and_Risk.html">archived GAD website</a> </p></div>tag:www.gov.uk,2005:DocumentCollection/2069382013-11-18T12:24:00+00:002015-01-19T15:57:43+00:00Collection: National Insurance Fund reportsGovernment Actuary's annual short-term projections and 5-year long-term projections for the National Insurance Fund.
<p><em>Updated:</em> Report to Parliament on the 2015 re-rating and up-rating orders added to collection</p><div class="govspeak"><p>These reports look at the financial implications of changes to National Insurance contribution and benefit rates.</p></div>tag:www.gov.uk,2005:PublicationesquePresenter/2810802015-01-19T15:25:03+00:002015-01-19T15:25:03+00:00Independent report: Report to Parliament on the 2015 re-rating and up-rating ordersThe Government Actuary’s annual report on the impact on the Great Britain National Insurance Fund of the year’s orders for benefit and contribution-related uprating.<div class="govspeak"><p>This report has been prepared under sections 142(1), 150(8) and 150A(5) of the Social Security Administration Act 1992 (SSAA 92) and section 1(4) of the Welfare Benefits Up-rating Act 2013. It considers the potential effect on the NIF of:</p>
<ul>
<li>the draft Social Security Benefits Up-rating Order 2015 (the Up-rating Order) </li>
<li>the draft Social Security (Contributions) (Re-rating and National Insurance Funds Payments) Order 2015 (the Re-rating and National Insurance Funds Payments Order)</li>
<li>the Welfare Benefits Up-rating Order 2015.</li>
</ul><p>This report also includes the potential effect on the Fund of:</p>
<ul>
<li>
<p>the draft Social Security (Contributions) (Limits and Thresholds) (Amendment) Regulations 2015 (the Limits and Thresholds Regulations) and </p>
</li>
<li>
<p>the proposed changes in the National Insurance Contributions Bill currently before the UK Parliament, </p>
</li>
</ul><p>together with the effect of the introduction of Class 3A voluntary contributions under the Social Security Class 3A Contributions (Units of Additional Pension) Regulations 2014.</p></div>tag:www.gov.uk,2005:PublicationesquePresenter/2789062014-12-31T12:25:00+00:002014-12-31T12:25:00+00:00Research and analysis: Actuarial valuation of the police pension schemesThe Government Actuary's Department has completed a valuation of the police pension schemes as of 31 March 2012. <div class="govspeak"><p>At the request of the Home Office, the Government Actuary’s Office carried out an actuarial valuation of the police pension schemes as at 31 March 2012. The valuation has been undertaken in accordance with the <a href="https://www.gov.uk/government/publications/public-service-pensions-actuarial-valuations-and-the-employer-cost-cap-mechanism">Public Service Pensions (valuations and employer cost cap) Directions 2014</a>, which specify certain assumptions and require other assumptions to be the Home Secretary’s best estimates. HM Treasury has confirmed its consent to the assumptions proposed by the Home Secretary.</p></div>tag:www.gov.uk,2005:PublicationesquePresenter/2067092009-04-01T00:00:00+01:002014-12-18T16:11:40+00:00Correspondence: eNews from GADThe regular newsletter of the Government Actuary's Department, with topical issues affecting the UK public sector and overseas.<p><em>Updated:</em> eNews issue 18, December 2014 </p><div class="govspeak"><p>Previous issues of eNews can be found at the <a rel="external" href="http://webarchive.nationalarchives.gov.uk/20130904203407/http://www.gad.gov.uk/Publications/Newsletters.html">archived GAD website</a></p>
<p><a href="mailto:newsletter@gad.gov.uk&amp;subject=Subscribe%20me%20to%20your%20eNewsletter">Subscribe to the GAD eNewsletter</a></p></div>tag:www.gov.uk,2005:PublicationesquePresenter/2350642014-05-23T00:00:00+01:002014-10-28T19:11:05+00:00Consultation outcome: Consultation on the regulations to introduce a new firefighters’ pension scheme from April 2015This is the second consultation on the regulations relating to membership and benefits in the new firefighters’ pension scheme 2015.<p><em>Updated:</em> Added summary of responses and government response, verification report and equality statement.</p><div class="govspeak"><p>This second consultation on the firefighters’ pension scheme seeks responses from interested parties on the draft regulations which are to come into force from 1 April 2015. This consultation covers the provisions relating to membership and benefits in the new scheme, and includes new sections relating to the funding and valuation arrangements.</p>
<p>Further consultation exercises covering the governance arrangements of the new scheme and the transitional arrangements to apply for those firefighter members who transfer to the new 2015 scheme will follow shortly.</p>
<p>Before making regulations in exercise of the power in section 1 of the <a rel="external" href="http://www.legislation.gov.uk/ukpga/2013/25/contents/enacted">Public Service Pensions Act 2013</a> to establish pension schemes for fire and rescue workers in England, the Secretary of State for Communities and Local Government is required to consult such persons that appear to the Secretary of State likely to be affected by the regulations. A <a href="https://www.gov.uk/government/publications/firefighters-pension-scheme-regulations-information-on-who-should-be-consulted">statement</a> has been published listing those who would normally be consulted.</p>
<p>You can find more information on the <a href="https://www.gov.uk/government/publications/firefighters-pension-scheme-reforms">firefighters’ pension scheme reforms</a> page. </p>
<p>See details on the first <a href="https://www.gov.uk/government/consultations/firefighters-pension-scheme-from-april-2015">consultation</a> on the regulations.</p></div>tag:www.gov.uk,2005:PublicationesquePresenter/2569252014-08-27T16:20:05+01:002014-08-27T16:20:05+01:00Corporate report: GAD business critical modelsThe Government Actuary's Department is publishing a list of its business critical models as part of its response to the Macpherson review of quality assurance of government models.<div class="govspeak"><p>The <a href="https://www.gov.uk/government/publications/review-of-quality-assurance-of-government-models">Macpherson Review of quality assurance of government models</a> recommended that departments consider making a list of business critical models publicly available.</p>
<p>This document is the Government Actuary’s Department’s list of business critical models.</p></div>tag:www.gov.uk,2005:PublicationesquePresenter/2558472014-08-19T16:16:00+01:002014-08-19T16:16:00+01:00Guidance: Broad comparability against the Principal Civil Service Pension Scheme in Great Britain (PCSPS)This announcement follows on from the previous Important Announcement issued by the Government Actuary’s Department (GAD) on 1 July 2014.<div class="govspeak"><p>On 24 July 2014, The Public Service (Civil Servants and Others) Pensions Regulations 2014 (SI 2014/1964) were laid before parliament. These regulations constitute the 2015 reforms to the Principal Civil Service Pension Scheme in Great Britain (PCSPS).</p>
<p>Implications on existing broad comparability certificates issued by GAD against the PCSPS and details of the new process are explained.</p></div>